Getting Rid of a Second Mortgage in Chapter 13 Bankruptcy

Many people here in New Jersey have more than one mortgage. This may be because they purchased it with an 80/20 loan (one loan for the “downpayment," another for the remainder of the purchase price), borrowed money for a home improvement like a kitchen remodeling, or got a debt consolidation loan.

Either way, many times when they fall into financial hardship, that second mortgage payment can become a burden. The question becomes, if you have to file bankruptcy, can you get rid of it? “Stripping off” a mortgage in bankruptcy is possible, but there are three things to bear in mind. Get more information here.

You must file a chapter 13, not chapter 7

Your home value must be substantially lower than your first mortgage balance

You must complete your chapter 13 plan

I hope you find my web site useful and informative, and that it answers your questions. However, you should know that this site's content is no substitute for a consultation with an attorney. Each person's case is different, and the pages on this site are designed specifically to provide general answers on New Jersey law and bankruptcy filings in New Jersey (and not for any matters outside New Jersey). For that reason, this site cannot serve as legal advice on your particular case, nor should you assume the existence of an attorney-client relationship either by reading its pages or contacting me initially by e-mail. I encourage you to contact me and schedule an appointment to come in. Let me give you a legal opinion based on your case that will help you specifically.

I hope you find my web site useful and informative, and that it answers your questions. However, you should know that this site's content is no substitute for a consultation with an attorney. Each person's case is different, and the pages on this site are designed specifically to provide general answers on New Jersey law and bankruptcy filings in New Jersey (and not for any matters outside New Jersey). For that reason, this site cannot serve as legal advice on your particular case, nor should you assume the existence of an attorney-client relationship either by reading its pages or contacting me initially by e-mail. I encourage you to contact me and schedule an appointment to come in. Let me give you a legal opinion based on your case that will help you specifically.

During these uncertain times, Richardson Law Offices remains available to help you, because even though we are all practicing social distancing, you still have a legal problem that is causing stress in your life. You need advice and assistance in dealing with it from an experienced attorney with out risking your health.

Our office is open, and we are ready to help you with your legal matter. We are happy to provide a virtual consultation, so you can talk to a lawyer from the safety and comfort of your home. Get more information here or call 856-432-4113.